Singapore has now passed a Financial Services and Markets bill that will tighten regulations for crypto firms across the country, Bloomberg reported on Tuesday.
The bill, which was passed on Tuesday, will require crypto firms that only provide services to clients abroad to be licensed. The report noted that such firms had not previously installed anti-money laundering (AML) and counter-terrorism financing (CFT) requirements.
In addition, under the new rule, the Monetary Authority of Singapore (MAS) has been given the power to regulate the crypto market.
MAS will prohibit individuals who are not qualified to carry out key roles, activities, and functions in the financial industry and will also impose a penalty of up to $737,050 on financial institutions that encounter cyber attacks or interruptions.
The latest measures by Singaporean authorities are designed to enable a safe environment for the growing population of crypto investors in the country. It is estimated that some 15.8% of the country’s population owns cryptocurrencies.
Singapore steps up crypto regulation
Singapore has been one of the first set of countries to set up a regulatory framework for the crypto industry. In January, MAS issued warnings to crypto exchanges across the country against advertising their services to the general public.
The regulator noted that the move was made after it discovered that some Digital Payment Token (DPT) service providers advertise their products through the the internet, physical advertising, and through automated teller machines (ATMs) in public centers which could pose a risk to investors.
Notably, stricter crypto regulations in Singapore have not deterred crypto firms from attempting to set up shop in the country. There are roughly 70 firms awaiting regulatory approval to launch their services in the country.
Crypto exchange Binance is the only major company that has pulled out of seeking regulatory approval in Singapore. Last December, Binance announced it had withdrawn its MAS application and would stop operating as a crypto service provider in the country as from February 12, 2022.
